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The Major Prediction of the Lemons Model Is That

Question 90

Multiple Choice

The major prediction of the lemons model is that


A) the presence of asymmetric information reduces the average quality of goods for sale.
B) most used cars are worthless.
C) if one sells a used car in good condition,one will not be penalized.
D) if one buys a used car,one can expect it to be in good condition.
E) the presence of asymmetric information increases the average quality of goods for sale.

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